If a Shortage Exists in a Market,the Natural Tendency Is

question 83

Multiple Choice

If a shortage exists in a market,the natural tendency is for:

• A) demand to increase.
• B) price to increase.
• C) quantity supplied to decrease.
• D) no change to occur in the market.

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Definitions:

Constitution

The system of fundamental principles according to which a nation, state, corporation, or the like, is governed.

Liberal Democracy

A form of democracy emphasizing liberty of individuals.

Liberties of the Individual

The rights and freedoms that belong to each person, which allow for the expression of self and protection from external control or interference.

Natural Rights

Fundamental rights that every individual is born with and cannot be taken away, such as life, liberty, and the pursuit of happiness.